Responding to a requirement of the Sarbanes-Oxley Act, The Securities and Exchange Commission has reaffirmed that the Financial Accounting Standards Board has met the criteria needed to continue to be recognized as the accounting standard setting body.
FASB Chairman Robert Herz said, "We appreciate the continued confidence and support of the SEC and look forward to working closely and effectively with the Commission and its staff, as well as with the new Public Company Accounting Oversight Board in ensuring quality financial reporting in the United States."
Additionally, the Securities and Exchange Commission formally OK'd the formation of the Public Company Accounting Oversight Board, meeting requirements to approve the structure of the Board by the April 26, 2003 deadline imposed by Congress.
In a last minute change to the Board's bylaws, incoming PCAOB Chairman William McDonough was given greater powers over hiring and firing, and was given the title President and Chief Executive Officer.
"The SEC's determination today is a landmark in the pursuit of stronger investor protections, and my fellow Commissioners and I look forward to working with the Board members towards improving the integrity of the audit process and the credibility of financial reporting," said SEC Chairman William H. Donaldson.